Tesla US Sales Drop to Three-Year Low in November After EV Subsidies End

Tesla’s strong delivery performance in the United States during the third quarter has proven to be short-lived. As many analysts predicted, the surge was largely driven by pull-forward demand ahead of the expiration of federal EV purchase subsidies in September. New data shows that Tesla’s US sales fell sharply in November, reaching their lowest monthly level in nearly three years.

According to estimates from Cox Automotive, cited by Reuters and Electrek, Tesla sold approximately 39,800 vehicles in the US in November. This represents a 23% year-on-year decline, making it Tesla’s weakest month on the American market since January 2022.

Tesla does not publish official monthly sales figures by region, so analysts rely on third-party data sources for these estimates.

Demand Falls After Subsidy Expiry

The November slowdown confirms concerns that Tesla’s Q3 performance was artificially inflated by buyers rushing to take advantage of EV subsidies that ended in September.

Once the incentives disappeared, overall demand for electric vehicles in the US dropped significantly. In fact, total EV sales across all brands fell by 41% in November, highlighting the scale of the post-subsidy correction.

Against this backdrop, Tesla’s 23% decline appears relatively moderate compared to the broader market downturn.

Cheaper “Standard” Versions Fail to Boost Volumes

Tesla attempted to stimulate demand by introducing more affordable “Standard” versions of its two best-selling models, the Model 3 and Model Y. These variants are priced around $5,000 lower than previously available configurations.

However, the cost reductions came with notable compromises:

• Removal of several features

• Simplified interior equipment

• Controversial changes, such as retaining the glass roof but covering it internally with trim

According to Cox Automotive analysts, these Standard versions are currently cannibalizing sales of higher-end trims, particularly the Model 3, rather than expanding Tesla’s overall sales volume.

Importantly, analysts caution that it is too early to fully assess the impact of the Standard variants, as production volumes are expected to scale meaningfully only next year.

Tesla Gains Market Share Despite Falling Sales

Paradoxically, even as its absolute sales declined, Tesla increased its share of the US EV market.

In November:

• Tesla’s US EV market share rose from 43.1% to 56.7% year-on-year

This increase reflects the fact that competitors were hit even harder by the end of subsidies, reinforcing Tesla’s dominant position despite weaker demand.

A Market-Wide Reality Check for US EVs

The November figures underscore how dependent the US EV market remains on government incentives. Once subsidies ended, demand contracted sharply, affecting every manufacturer.

For Tesla, the data suggests:

• Q3 deliveries were inflated by incentive-driven demand

• Price cuts alone are not enough to sustain growth

• Market leadership remains strong, but overall volumes are under pressure

How quickly demand recovers — and whether new incentives, financing strategies, or refreshed models can reverse the trend — will be a key story to watch in 2026.